The St. Joe Company Reports Fourth Quarter and Full Year 2022 Results and Declares a Quarterly Dividend Of $0.10
- Continued execution of the long-term strategic goal of diversifying and growing recurring revenue streams while increasing the intrinsic value of development and operating assets.
-
Hospitality revenue for the full year 2022 increased by 29%, leasing revenue increased by 45%, while real estate revenue decreased by 31%, compared to the full year 2021. Overall revenue for the full year 2022 was
$252.3 million compared to$267.0 million in 2021.
-
Net income attributable to the Company for the full year 2022 decreased by 4.8% to
$70.9 million primarily due to timing and product mix of sales in residential communities.
-
For the full year 2022, the Company invested
$356.7 million in capital expenditures to develop operating properties and for real estate to be sold while continuing to return capital to shareholders through dividends and stock repurchases.
Consolidated Fourth Quarter and Full Year 2022 Results
Total consolidated revenue for the fourth quarter of 2022 decreased to
For the full year 2022, total consolidated revenue decreased to
Over the past few years, the Company entered into eight joint ventures which are unconsolidated and accounted for using the equity method. For the three months ended
Net income attributable to the Company for the fourth quarter of 2022 decreased to
For the full year 2022, the Company funded
On
Real Estate
For the fourth quarter of 2022, the Company sold 262 residential homesites and the unconsolidated Latitude Margaritaville Watersound joint venture transacted 116 homes for a total of 378 homesites and homes, as compared to 310 residential homesites and 47 homes in the unconsolidated Latitude Margaritaville Watersound joint venture for a total of 357 in the fourth quarter of 2021.
For the full year 2022, the Company sold 752 residential homesites and the unconsolidated Latitude Margaritaville Watersound joint venture transacted 316 homes. Together, the homesites and homes increased to the highest single year number in the Company’s history at 1,068 in 2022 compared to prior single year record of 853 in 2021. The 853 homesite sales for the full year 2021 consisted of 806 residential homesites and 47 homes in the unconsolidated Latitude Margaritaville Watersound joint venture. Although the mix of homesite sales from different communities significantly impacted revenue comparability between the years (2022 average sales price of approximately
As of
The Latitude Margaritaville Watersound unconsolidated joint venture, planned for 3,500 residential homes, had 605 net sale contracts executed in 2022. Since the start of sales in 2021, there have been 1,040 home contracts. For the fourth quarter of 2022, there were 116 completed home sales bringing the community to 363 occupied homes. The 677 homes under contract as of
Hospitality
Hospitality revenue increased by 29% to
Hospitality revenue continues to benefit from the growth of the
The Lodge 30A hotel is scheduled to open in
Leasing
Leasing revenue from commercial, office, retail, multi-family, senior living, self-storage and other properties increased by 38% to
In the fourth quarter of 2022, the Company’s unconsolidated joint venture and its joint venture partner sold the Sea Sound 300-unit apartment community. In addition, the Company acquired an additional 30% ownership interest, bringing its share of the
Rentable space as of
Corporate and Other Operating Expenses
The Company’s corporate and other operating expenses for the three months ended
Additional Information and Where to Find It
Additional information with respect to the Company’s results for the fourth quarter and full year 2022 will be available in a Form 10-K that will be filed with the
FINANCIAL DATA SCHEDULES
Financial data schedules in this press release include consolidated results, summary balance sheets, corporate and other operating expenses and the reconciliation of Cash Generated for Distribution or Investment (CGFDI), a non-GAAP financial measure, for the fourth quarter and full year 2022 and 2021, respectively.
FINANCIAL DATA
Consolidated Results ($ in millions except share and per share amounts) |
||||||||
|
Quarter Ended
|
Twelve Months Ended
|
||||||
|
2022 |
2021 |
2022 |
2021 |
||||
Revenue |
|
|
|
|
||||
Real estate revenue |
|
|
|
|
||||
Hospitality revenue |
22.3 |
|
17.3 |
|
97.2 |
|
75.3 |
|
Leasing revenue |
11.0 |
|
8.0 |
|
39.2 |
|
27.1 |
|
Timber revenue |
1.3 |
|
1.2 |
|
6.7 |
|
6.0 |
|
Total revenue |
61.6 |
|
99.5 |
|
252.3 |
|
267.0 |
|
Expenses |
|
|
|
|
||||
Cost of real estate revenue |
14.7 |
|
27.6 |
|
50.0 |
|
60.7 |
|
Cost of hospitality revenue |
19.3 |
|
14.9 |
|
77.5 |
|
58.3 |
|
Cost of leasing revenue |
5.0 |
|
3.3 |
|
17.6 |
|
11.6 |
|
Cost of timber revenue |
0.2 |
|
0.2 |
|
0.8 |
|
0.7 |
|
Corporate and other operating expenses |
5.6 |
|
5.9 |
|
22.1 |
|
23.0 |
|
Depreciation, depletion and amortization |
6.6 |
|
5.6 |
|
22.9 |
|
18.2 |
|
Total expenses |
51.4 |
|
57.5 |
|
190.9 |
|
172.5 |
|
Operating income |
10.2 |
|
42.0 |
|
61.4 |
|
94.5 |
|
Investment income, net |
2.3 |
|
2.4 |
|
9.9 |
|
7.2 |
|
Interest expense |
(5.4 |
) |
(4.2 |
) |
(18.4 |
) |
(15.9 |
) |
Equity in income (loss) from unconsolidated joint ventures |
22.6 |
|
0.7 |
|
26.0 |
|
(0.9 |
) |
Other income, net |
7.7 |
|
0.9 |
|
15.7 |
|
13.8 |
|
Income before income taxes |
37.4 |
|
41.8 |
|
94.6 |
|
98.7 |
|
Income tax expense |
(9.8 |
) |
(9.8 |
) |
(24.4 |
) |
(25.0 |
) |
Net income |
27.6 |
|
32.0 |
|
70.2 |
|
73.7 |
|
Net loss (income) attributable to non-controlling interest |
0.5 |
|
(0.1 |
) |
0.7 |
|
0.8 |
|
Net income attributable to the Company |
|
|
|
|
|
|
|
|
Basic net income per share attributable to the Company |
|
|
|
|
|
|
|
|
Basic weighted average shares outstanding |
58,305,586 |
|
58,882,549 |
|
58,720,050 |
|
58,882,549 |
|
Summary Balance Sheet
($ in millions) |
||
|
|
|
|
|
|
Assets |
|
|
Investment in real estate, net |
|
|
Investment in unconsolidated joint ventures |
50.0 |
52.0 |
Cash and cash equivalents |
37.7 |
70.2 |
Investments – debt securities |
40.6 |
89.0 |
Other assets |
61.7 |
70.3 |
Property and equipment, net |
39.6 |
31.1 |
Investments held by special purpose entities |
204.9 |
205.5 |
Total assets |
|
|
|
|
|
Liabilities and Equity |
|
|
Debt, net |
|
|
Other liabilities |
94.3 |
68.0 |
Deferred revenue |
38.9 |
36.2 |
Deferred tax liabilities, net |
82.7 |
77.3 |
Senior Notes held by special purpose entity |
177.9 |
177.6 |
Total liabilities |
779.7 |
582.1 |
Total equity |
651.1 |
626.1 |
Total liabilities and equity |
|
|
Corporate and Other Operating Expenses
($ in millions) |
||||
|
Quarter Ended
|
Twelve Months Ended
|
||
|
2022 |
2021 |
2022 |
2021 |
Employee costs |
|
|
|
|
Property taxes and insurance |
1.3 |
1.3 |
5.5 |
5.4 |
Professional fees |
1.0 |
0.9 |
3.7 |
3.2 |
Marketing and owner association costs |
0.3 |
0.4 |
1.1 |
1.6 |
Occupancy, repairs and maintenance |
0.2 |
0.1 |
0.7 |
0.7 |
Other miscellaneous |
0.3 |
0.6 |
1.5 |
1.7 |
Total corporate and other operating expenses |
|
|
|
|
Reconciliation of Non-GAAP Financial Measures (Unaudited)
($ in millions except per share amount) |
||||
“Cash Generated for Distribution or Investment” (CGFDI) is a non-GAAP measure, which management believes assists investors by providing insight into the cash generated by the Company that management has available for distribution to shareholders or for reinvestment into the business. This measure is calculated by adding “Net Cash Provided by Operating Activities”, “Expenditures for and Acquisition of Real Estate to Be Sold”, and “Capital Distributions from Unconsolidated Joint Ventures” and subtracting “Capital Distributions to Non-Controlling Interest”, “Principal Payments for Debt”, “Principal Payments for Finance Leases”, and “Maintenance Capital Expenditures”. Maintenance Capital Expenditures are intended to show capital expenditures made to maintain the value and/or revenue generating capacity of existing operating assets. CGFDI should not be considered an alternative to “Net Cash Provided by Operating Activities” determined in accordance with GAAP as an indicator of the Company’s cash flows and liquidity position. |
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|
Quarter Ended |
Twelve Months Ended |
||
|
|
|
||
|
2022 |
2021 |
2022 |
2021 |
Net Cash Provided by Operating Activities |
|
|
|
|
Plus: Expenditures for and Acquisition of Real Estate to Be Sold |
27.8 |
19.0 |
97.5 |
47.3 |
Plus: Capital Distributions from |
8.8 |
1.3 |
12.0 |
1.5 |
Less: Capital Distributions to Non-Controlling Interest |
(0.1) |
(0.2) |
(2.4) |
(1.2) |
Less: Principal Payments for Debt * |
(0.7) |
(0.8) |
(2.9) |
(2.3) |
Less: Principal Payments for Finance Leases |
-- |
-- |
(0.1) |
(0.1) |
Less: Maintenance Capital Expenditures |
(0.5) |
(0.8) |
(2.9) |
(2.5) |
CGFDI |
|
|
|
|
Basic Weighted Average Shares Outstanding |
58,305,586 |
58,882,549 |
58,720,050 |
58,882,549 |
CGFDI Per Basic Share |
|
|
|
|
*Principal Payments for Debt does not include |
Important Notice Regarding Forward-Looking Statements
Certain statements contained in this press release, as well as other information provided from time to time by the Company or its employees, may contain forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. You can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. These statements may include words such as “guidance,” “anticipate,” “estimate,” “expect,” “forecast,” “project,” “plan,” “intend,” “believe,” “confident,” “may,” “should,” “can have,” “likely,” “future” and other words and terms of similar meaning in connection with any discussion of the timing or nature of future operating or financial performance or other events. Examples of forward-looking statements in this press release include statements regarding our growth prospects; expansion of operational assets such as increases in hotel rooms in 2023; plans to maintain an efficient cost structure; our capital allocation initiatives, including the payment of our quarterly dividend; plans regarding our joint venture developments; and the timing of current developments and new projects in 2023 and beyond. These statements involve risks and uncertainties, and actual results may differ materially from any future results expressed or implied by the forward-looking statements.
The Company wishes to caution readers that, although we believe any forward-looking statements are based on reasonable assumptions, certain important factors may have affected and could in the future affect the Company’s actual financial results and could cause the Company’s actual financial results for subsequent periods to differ materially from those expressed in any forward-looking statement made by or on behalf of the Company, including: our ability to successfully implement our strategic objectives; new or increased competition across our business units; any decline in general economic conditions, particularly in our primary markets; interest rate fluctuations; supply chain disruptions; inflation; geopolitical conflicts and political uncertainty and the corresponding impact on the global economy; the continuing recovery from the COVID-19 pandemic; our ability to successfully execute or integrate new business endeavors and acquisitions; our ability to yield anticipated returns from our developments and projects; our ability to effectively manage our real estate assets, as well as the ability for us or our joint venture partners to effectively manage the day-to-day activities of our projects; the illiquidity of all real estate assets; financial risks, including risks relating to currency fluctuations, credit risks, and fluctuations in the market value of our investment portfolio; any potential negative impact of our longer-term property development strategy, including losses and negative cash flows for an extended period of time if we continue with the self-development of granted entitlements; our dependence on homebuilders; reductions in travel and other risks inherent to the hospitality industry; the financial condition of our commercial tenants; regulatory and insurance risks associated with our senior living facilities; public health emergencies; any reduction in the supply of mortgage loans or tightening of credit markets; our dependence on strong migration and population expansion in our regions of development, particularly
Any forward-looking statement made by us in this press release speaks only as of the date on which it is made, and we do not undertake to update these statements other than as required by law.
About
© 2023,
View source version on businesswire.com: https://www.businesswire.com/news/home/20230222005700/en/
St. Joe Investor Relations Contact:
Chief Financial Officer
1-866-417-7132
Marek.Bakun@Joe.Com
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